UPS to cut its amazon business by more than 50%

[Moneythehardway]

The beginning of less drivers?

https://finance.yahoo.com/news/ups-shares-plunge-plan-slash-143438276.html

UPS Shares Plunge on Plan to Slash Amazon Business By Half

United Parcel Service Inc. shares plunged after the company projected annual revenue well below expectations, telling investors that a long-awaited rebound in demand for its parcel services won’t arrive this year and prompting it to slash its low-margin business with Amazon.com Inc.

“Amazon is our largest customer, but it’s not our most profitable customer,” Chief Executive Officer Carol Tomé told investors on a conference call.

Amazon confirmed it would ship fewer parcels with UPS, even though the online retailer had initially asked to ship more through the courier.

 

[KearsargeCoop]

It seems like this has been the plan all along. These press releases are wording it like UPS told Amazon to pound sand, but ultimately Amazon has been chipping away at volume for years.
I see Amazon delivering all their own stuff with x miles of major metros and keeping hard to reach America on UPS trucks. Equaling 50 percent decline in volume.

Nothing to see here.

 

[Wally]

What exactly is "higher yielding volume"?

“We are deliberately shifting our business and increasing our focus on growing higher yielding volume and value share. Lower overall volume levels from this customer will lead to lower revenue dollars in the near term.”

UPS to Slash Package Deliveries for Amazon

UPS stock fell to its lowest trading price since 2020 on the news the shipping giant will halve its deliveries for Amazon by the end of 2026.

www.theepochtimes.com

 

[DriveInDriѵeOut]

What exactly is "higher yielding volume"?

“We are deliberately shifting our business and increasing our focus on growing higher yielding volume and value share. Lower overall volume levels from this customer will lead to lower revenue dollars in the near term.”

UPS to Slash Package Deliveries for Amazon

UPS stock fell to its lowest trading price since 2020 on the news the shipping giant will halve its deliveries for Amazon by the end of 2026.

www.theepochtimes.com

way to avoid admitting it was dumb to give Amazon such a good deal on shipping costs.

 

[Wally]

way to avoid admitting it was dumb to give Amazon such a good deal on shipping costs.

USPS is learning that too.

 

[Been In Brown Too Long]

Said it at the time, but I'll say it again. Should have immediately cut their volume or gave no price incentives when Amazon announced its intention to build up a fleet of delivery vans and start delivering its own volume with hints that they'd possibly like to break into the third party delivery business too. Why did UPS give Amazon rock bottom shipping costs that gave them additional capital to invest in something that would cut into our volume and could ultimately be the demise of UPS? Sounded dumb then, looks really dumb now after the fact.

 

[Brownsocks]

They should have done this years ago. Layoffs incoming.

 

[DOK]

The beginning of less drivers?

https://finance.yahoo.com/news/ups-shares-plunge-plan-slash-143438276.html

UPS Shares Plunge on Plan to Slash Amazon Business By Half

United Parcel Service Inc. shares plunged after the company projected annual revenue well below expectations, telling investors that a long-awaited rebound in demand for its parcel services won’t arrive this year and prompting it to slash its low-margin business with Amazon.com Inc.

“Amazon is our largest customer, but it’s not our most profitable customer,” Chief Executive Officer Carol Tomé told investors on a conference call.

Amazon confirmed it would ship fewer parcels with UPS, even though the online retailer had initially asked to ship more through the courier.

Yes

 

[KearsargeCoop]

How many guys out there are still delivering Amazon?

 

[Brownwind]

How many guys out there are still delivering Amazon?

Not sure. But I hope they are enjoying the twenty bucks an hour they are earning out there.

 

[I have NOT been lurking]

How many guys out there are still delivering Amazon?

Plenty since they churn and burn, and use Flex

 

[KearsargeCoop]

I meant UPS brothers n sisters you ding dong

 

[KearsargeCoop]

Not sure. But I hope they are enjoying the twenty bucks an hour they are earning out there.

Plenty since they churn and burn, and use Flex

 

[Johney]

Said it at the time, but I'll say it again. Should have immediately cut their volume or gave no price incentives when Amazon announced its intention to build up a fleet of delivery vans and start delivering its own volume with hints that they'd possibly like to break into the third party delivery business too. Why did UPS give Amazon rock bottom shipping costs that gave them additional capital to invest in something that would cut into our volume and could ultimately be the demise of UPS? Sounded dumb then, looks really dumb now after the fact.

I think people miss the fact that it was all likely set up in a contract a while ago..now said contract has expired and UPS says pound sand. Think about it....every big company doesn't do any deals without a contract.

 

[JL 0513]

How many guys out there are still delivering Amazon?

Half of our loads are still Amazon and we have an Amazon Fulfillment Center on area with their full fleet of vans.

 

[KearsargeCoop]

Half of our loads are still Amazon and we have an Amazon Fulfillment Center on area with their full fleet of vans.

Ok good to know thanks. Interesting

 

[Turdferguson]

What exactly is "higher yielding volume"?

“We are deliberately shifting our business and increasing our focus on growing higher yielding volume and value share. Lower overall volume levels from this customer will lead to lower revenue dollars in the near term.”

UPS to Slash Package Deliveries for Amazon

UPS stock fell to its lowest trading price since 2020 on the news the shipping giant will halve its deliveries for Amazon by the end of 2026.

www.theepochtimes.com

Medical, and Business to Business delivery

 

[BrownFlush]

Said it at the time, but I'll say it again. Should have immediately cut their volume or gave no price incentives when Amazon announced its intention to build up a fleet of delivery vans and start delivering its own volume with hints that they'd possibly like to break into the third party delivery business too. Why did UPS give Amazon rock bottom shipping costs that gave them additional capital to invest in something that would cut into our volume and could ultimately be the demise of UPS? Sounded dumb then, looks really dumb now after the fact.

Same reason when FedX bought RPS. When they started the ground game. If I seen it coming, management seen it coming.
We were alone in the game. But, along came someone who would treat the customer like a customer.
"Oh you're not ready for me to pick up, that's ok , I'll wait." As opposed to...

"Not ready? See you tomorrow."
"Please wait!"
"Bye. Bye. You'll learn to be ready when I come."

What good is micro managing every second if you don't have any packages?

 

[BrownFlush]

Looking back now, I think what happened, they wanted to happen. Just like you guys are talking about Amazon.
I drive by my Center now, it was built in 1971. Still using it. I drive 2 miles away. Humongous FedX Ground Station built 2 years ago, they are running over 50 trucks out of there daily.
I retired in 2009. They were running 22 -25 routes daily. They might add a couple more, but nothing has changed.

I'm thinking someone might have been thinking, let them have it. Down the road, if we don't, we're gonna have to build all kinds of new buildings, a zillion trucks, drivers, etc. They knew the volume was coming. They didn't want it. They're doing what they decided years ago.

 

[MyTripisCut]

Looking back now, I think what happened, they wanted to happen. Just like you guys are talking about Amazon.
I drive by my Center now, it was built in 1971. Still using it. I drive 2 miles away. Humongous FedX Ground Station built 2 years ago, they are running over 50 trucks out of there daily.
I retired in 2009. They were running 22 -25 routes daily. They might add a couple more, but nothing has changed.

I'm thinking someone might have been thinking, let them have it. Down the road, if we don't, we're gonna have to build all kinds of new buildings, a zillion trucks, drivers, etc. They knew the volume was coming. They didn't want it. They're doing what they decided years ago.

I think you’re onto something. If 10 percent of the people used e-commerce and we used to have 90 percent of it. Is UPS in worse shape if they now have 50 percent share, but e-commerce is now an 85 percent share?